Ten months into this pandemic, we have a lot more information about what it’s like to buy a home with everything that’s going on in the world. So, here are the pros and cons of buying right now. Hey, if you’re buying a home right now, there’s nothing like a little knowledge to prepare you!
Cons
Delays in the Process
One downside to COVID is that it’s causing delays in the closing process. Just recently, I had an inspection get pushed back 14 days because the seller’s son tested positive for the virus. Neither the inspector nor the buyer wanted to enter the home until the son’s symptoms were gone.
Inspections in general have been causing delays, and there can be other delays depending on the circumstances.
Hiring Contractors
With all the regulations in place, there are inevitable delays with contractors. Plumbers, electricians, and everyone else are trying to be safe and keep other people safe. This can mean delays or last-minute cancellations, which is frustrating but sometimes necessary.
Less Inventory is Available
People are hunkering down, and there haven’t been as many homes going on the market. People are also refinancing rather than buying new homes, which is keeping people in their homes.
There is LOTS of competition in our market, so don’t expect to get a great deal. It may take some time to find just the right home, so be prepared.
Tighter Lending Restrictions
The economic uncertainty throughout the pandemic has led to some sudden changes in the lending world. Non-conforming mortgages (like mortgages for the self-employed and jumbo loans) virtually disappeared. Some of them are coming back, but if you need a non-traditional home loan, those can be hard to get.
Lending restrictions in general are also tighter right now. Lenders are wanting more money down and less debt. Job security is even more important than normal, given everything that’s happening in the jobs market.
Pros
Interest Rates
One of the silver linings to the pandemic is that interest rates have been historically low. That gives you, the buyer, a lot more purchasing power than you would have with higher interest rates, and yes, that means you can afford to spend more on a home. Those super low payments are going to save you money!
Interest rates are forecasted to stay low through much of 2020, so it really is a good time to enter the market. If you haven’t purchased a home before, this might be your window of opportunity.
Time to Pack and Move
If you’re home a lot, there’s one good thing about moving right now: you’ll likely have lots of time to get organized before the big move.
Start by sorting through all of your stuff. There’s no sense in moving more than you absolutely have to, and it’ll be so much easier to pack once all the stuff you don’t want is out of the house. Get it out as soon as you can so you don’t have to think about it anymore.
You’ll also probably have plenty of time to unpack and get organized in your new home, too.
Nearly Everything Can be Virtual Now
The real estate and mortgage industry have improved by leaps and bounds when it comes to utilizing technology to get things done—there’s been no other choice with state and local restrictions. But this is a good thing, because some of these things that make the process of buying a home easier will likely be around forever.
Nearly everything related to buying a home can be done safely from home. Showings, inspections and more can be done without having to step foot into any buildings. Closings are in still in-person, but I’ve even done some curbside closings. I never thought I would see the day, but here we are.
Motivated Sellers
The pandemic has caused a lot of economic changes because of the unforeseen circumstances. Sometimes, this can lead to motivated sellers who have to sell for a variety of reasons.
If you’re thinking of buying a home, you can’t get started too early, especially in our market. Give me a call at (765) 427-7000. I’m here to help!
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